Facade of the former Paris Stock Exchange
By Devik Jain and Amruta Khandekar
(Reuters) – European shares rose on Thursday and rebounded from a nearly two-year low hit earlier in the session, after high U.S. inflation data spurred bets on aggressive interest rate hikes by the Federal Reserve. The pan-European STOXX 600 index closed up 0.85% at 389.15 points and ended a six-day streak of losses after oscillating between 0 positive and negative territories throughout the session. Data showed US consumer prices rose more than expected in September, bolstering the case for a fourth straight 0.75 percentage point adjustment by the US central bank next month. “The fact that (stocks) rallied so strongly suggests this was more of a technical buy rather than a fundamental-driven move,” said Craig Erlam, senior analyst at Oanda. The STOXX 600 has fallen 4.3% in the previous six sessions as markets worried about aggressive moves by central banks to contain rising prices and recent warnings from the International Monetary Fund and the World Bank of a recession.
Among the sectors on the STOXX 600, financials provided the biggest boost to the index, while tech shares rose from a low since May 2020 that hit earlier in the session and gained 0.3%.
Gains in energy and the industrial sector also boosted the index.
In LONDON, the Financial Times index advanced 0.35% to 6,850.27 points.
In FRANKFURT, the DAX index rose 1.51% to 12,355.58 points.
In PARIS, the CAC-40 index gained 1.04% to 5,879.19 points.
In MILAN, the Ftse/Mib index appreciated by 1.56%, at 20,785.82 points.
In MADRID, the Ibex-35 index registered an increase of 1.21%, to 7,348.80 points.
In LISBON, the PSI20 index rose by 1.23% to 5,253.96 points.
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